Flashback Friday: Revisiting the legacy of Indian investor Rakesh Jhunjhunwala

On August 8, 2022, India’s newest airline, Akasa Air backed by the late investor Rakesh Jhunjhunwala took to the skies with its first flight from Mumbai to Ahmadabad. Just a few days after the airline commenced operations, the late investor passed away in Mumbai.

To pay tribute, the newly launched airline tweeted, “Today, we honour and remember the life of a visionary, a trailblazer, and the true titan, that was the late Mr. Rakesh Jhunjhunwala. As we mark the anniversary of his passing, we reflect on the indelible mark he has left on India’s progress and his enduring impact on generations to come.”

Just like Akasa Air, Jhunjhunwala invested in numerous businesses. Additionally, he made investments through his privately held asset management and financial advising company, Rare Enterprises. Rekha Jhunjhunwala received the portfolio upon his passing.

Jhunjhunwala’s portfolio expanded dramatically during the past year. According to Trendlyne statistics, his portfolio’s net worth was Rs 25,397.54 crore at the end of the June 2022 quarter and increased to Rs 38,366.4 crore by the end of the June 2023 quarter.

Early life

Born into a Rajasthani family on July 5, 1960, Jhunjhunwala grew up in Mumbai (then Bombay) and lived there for most of his early life. His father was an Income Tax Commissioner. He pursued his higher education from Sydenham College and went on to become a Chartered Accountant.

After overhearing his father’s discussions about the stock market with his friends, Jhunjhunwala grew intrigued in the subject. Although his father gave him advice regarding the stock market, he never gave him any money to invest there. Despite the setback, Jhunjhunwala began investing in markets while he pursued his undergraduate degree. He used the 5,000 rupees that he had saved up in 1985 to make investments. By 2022, he managed to secure a staggering profit of Rs 11,000 crores.

Significant Investments

Between 1986 and 1989, Jhunjhunwala made a profit of approximately Rs 20–25 lakh, after making his original investment in 1985. His largest investment as of 2021 was in the Titan Company, which is valued Rs 7,294.8 crore.

As a partner in his asset management company, Rare Enterprises, he oversaw his own portfolio. Jhunjhunwala served on the boards of Prime Focus Limited, Geojit Financial Services, Bilcare Limited, Praj Industries, Provogue, Concord Biotech, Innovasynth Technologies Limited, Mid Day Multimedia Limited, Nagarjuna Construction Company, Viceroy Hotels, and Tops Security Limited in addition to being an active investor. He was also chairman of Aptech and Hungama Digital Media Entertainment.

He made a $400 million investment in India’s Akasa Air in July 2021 to acquire a 40 per cent stake in the low-cost carrier. The airline flies to 16 cities and has 20 aircraft as of August 2023. Jhunjhunwala had raised his ownership in the airline to 46 per cent prior to his passing, making him the major shareholder.

Aged 62, Jhunjhunwala died after getting admitted to Breach Candy Hospital in Mumbai. According to media reports, he died of acute multiple organ failure and other kidney-related ailments.

WATCH WION LIVE HERE